04 Dec A beneficiary won’t sign off on estate payouts. What’s next?

Q. I am one of the beneficiaries of my mothers estate in New Jersey. All the beneficiaries received a copy of the final accounting and release documents to sign and return to the estate attorney. However, one of the beneficiaries is refusing to sign the documents because the executors are refusing to look into possible missing investments that they believe are unaccounted for. Can you guide me to where I might find information on what are the procedures or steps an executor might take in addressing this? The executor said they were advised that it could cost $100,000 to go to court to rectify this problem, and this will eat up the inheritance of those of us who have already signed the documents.

— Beneficiary

A. We’re sorry to hear about your mom.

This does put you, the beneficiaries and the executor in a tough spot.

The unwilling beneficiary cannot be forced to sign a waiver of accounting, said Tom Szieber, a trusts and estates attorney at Avelino Law in Morristown.

Under New Jersey law, a beneficiary of an estate is entitled to demand a judicial accounting if he or she so desires, he said.

“As the executor’s attorney advised, if one or more beneficiaries will not sign a waiver, then the executor risks being held liable for breach of fiduciary duty if he or she seeks to settle the estate without obtaining judicial approval of the accounting,” Szieber said. “The fact that it may be expensive to pay for legal and accounting services does not absolve the executor from its obligation to account to the beneficiaries.”

However, if the beneficiary is simply speculating that the investments may exist without any reasonable basis to believe so, then the probate judge overseeing the matter may decide to approve the executor’s accounting, Szieber said.

“You would be wise to contact a law firm with experienced estate administration and litigation attorneys to see if they can advocate for a less expensive and burdensome solution to the dispute,” he said.

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This story was originally published on Dec. 4, 2023.

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